Typically you need to install SATA drivers which are either on a separate floppy disk or supplied mainboard driver disk. That's why your pc cant see the HDD
You need SP1 installed or newer for XP (SP2)
Once you find 'em, you need to use disk management tools to partition/format etc.
If your system won't load the drivers automatically, for whatever reason, make a floppy with the drivers on it, and press F6 when prompted during the installation. I believe the prompt is "Press F6 to install 3rd party SCSI or RAID drivers". I think this is where you would load them. It comes up before it begins loading its own drivers for everything else. Cheers